Hello Blog Readers,
I just wanted to update you all on some changes with my blogging. As you can see from the post below, I haven't updated this blog in quite some time. However, I have begun blogging once again, but this time at a new site: losaltosrealtor.wordpress.com. I have archived all of my old posts from here to that new site, and I will be regularly updated that blog with new posts on the local market here in the Silicon Valley.
Thank for all of your support!
Sincerely,
Nisha
P.S. If you haven't already, be sure to check out my updated website at NishaSharmaHomes.com, which has TONS of great tools to assist you in both your search for a new home and the process of selling your current home.
Monday, July 20, 2009
Sunday, July 20, 2008
In Silicon Valley, Real Estate Remains Strong
Here is a great article titled "In the Silicon Valley, Real Estate Remains Strong," written by Prashant Gopal and recently published in Business Week.
In Silicon Valley, Real Estate Remains Strong
By Prashant Gopal Thu Jul 10, 8:08 AM ET
Mountain Home Road in Silicon Valley's Woodside community is a pleasant, tree-lined street. At first glance it might seem like any other upscale suburb, until it becomes apparent that few of the homes are visible from the road. That's because this, and streets like it all over California's San Mateo and Santa Clara counties, are where Silicon Valley's most powerful people live -- and they like their privacy.
Silicon Valley's technology titans also try to keep a low profile when they put their mansions up for sale -- especially when the prices equal the value of many of the area's startups. The most expensive properties in America's technology capital are often sold privately and without the help of the multiple listing service.
But many of the homes themselves are decidedly high-profile. Take, for instance, Oracle (NasdaqGS:ORCL - News) Chief Executive Larry Ellison's 23-acre estate in Woodside, which he bought in 1995 for $12 million before spending more than $200 million to remake it into a 16th-century Japanese palace, complete with an authentic tea house and strolling garden.
Silicon Valley is dotted with similarly expansive mansions, often hidden behind gates or giant redwood trees. Residents of Atherton, the area's most exclusive community, include Eric Schmidt, chairman and CEO of Google (NasdaqGS:GOOG - News); Charles Schwab, the founder of brokerage Charles Schwab (NasdaqGS:SCHW - News); and Meg Whitman, former CEO of eBay (NasdaqGS:EBAY - News).
Foreclosure-Free Zone
Unlike other California markets that have been battered by foreclosures, real estate in Silicon Valley, part of the pricey San Francisco Bay area, has remained relatively strong and has been buoyed by the job growth in the technology sector and some of the highest salaries in the nation. The subprime problems that have vexed other parts of California have been relegated to parts of San Jose and to the outskirts of Silicon Valley. The towns with the best schools, including Palo Alto, Woodside, Los Altos Hills, and Cupertino also tend to have the most robust markets.
And luxury homes -- properties listed for more than $3.5 million -- might be holding up best because buyers who can afford these prices aren't concerned about interest-rate fluctuations or the credit crunch. This could change if the stock market continues to plunge and the nation falls into a deep recession, however.
"People here in Silicon Valley are so rich," says Los Gatos Realtor Susan Fagin. "When I first started in real estate 20 years ago, my dream was to get a doctor as a client. Now, all we want is a Google employee as a client."
A BusinessWeek.com survey of the most expensive listings in Silicon Valley included 14 ranging from a $10.75 million estate in Woodside to a $45 million manor in Los Altos Hills. The $45 million listing on Stonebrook Court includes a 30,000-square-foot mansion, built in 1914, which "played host to Presidents and kings, movie stars and celebrities," according to the property's online description. It has a grand ballroom that is adorned with "16th-century gilded Venetian ceiling paintings."
Asking Prices and "Gold"
The market has slowed since the credit crisis began last summer, says Dave Walsh, president of the Santa Clara County Assn. of Realtors and vice-president of Alain Pinel Realtors in San Jose. But multiple offers still come in for some listings, he says. "Most properties are not selling above asking price anymore," Walsh says. "Now they're getting asking price."
Median home prices in prime areas of Silicon Valley are "plus or minus 5%" compared to a year ago, according to Kenneth Rosen, chairman of the Fisher Center for Real Estate & Urban Economies at the University of California, Berkeley. Commercial real estate is even stronger. Apartment rents climbed 5% to 10% in the first quarter compared to a year ago, he says. "Technology is doing well and that's a big positive," Rosen says.
Teardowns, which were popular during the housing boom in suburbs across the country, are a visible sign of Silicon Valley's busy market. Buyers are making offers on homes with the intention of knocking them down and replacing them with mansions.
Drive a bit outside downtown Los Gatos, just past the post office, and you'll find a 20-acre estate on sale for $13.5 million. The owners of the property are empty-nesters and are looking to move to a smaller property in town. The house itself is not large compared to other Silicon Valley mansions in this range. But in addition to the 8,200-square-foot main house, a caretaker's cottage, and a guest house, the compound also has 45 minutes' worth of hiking trails and a swimming pool large enough to paddle around in a kayak. And the real attraction: 17 acres of undeveloped land that are more or less as nature left them. A buyer could easily subdivide the sprawling property and put up a few more houses here.
"In any of these hillside communities, a parcel of land is like gold," says the listing's agent, Dennis Byron, who has been selling Silicon Valley real estate for 36 years. "Buildable pieces are valuable."
On the Down Low
Byron is careful not to reveal much about the sellers. Wealthy homeowners in Silicon Valley tend to value privacy.
Catherine Marcus, a realtor with Sotheby's International Realty in San Francisco, says one of her listings, a 5,200-square-foot home in Woodside, recently sold for $7 million and "never made it to the market."
"An agent called me and said, 'What do you have? I have a client that wants to buy,'" she says. "At that level, people are very picky. Yes, people think these people have all the money in the world and can afford anything. They also want everything in the world so you have to go and hunt it down."
In Silicon Valley, Real Estate Remains Strong
By Prashant Gopal Thu Jul 10, 8:08 AM ET
Mountain Home Road in Silicon Valley's Woodside community is a pleasant, tree-lined street. At first glance it might seem like any other upscale suburb, until it becomes apparent that few of the homes are visible from the road. That's because this, and streets like it all over California's San Mateo and Santa Clara counties, are where Silicon Valley's most powerful people live -- and they like their privacy.
Silicon Valley's technology titans also try to keep a low profile when they put their mansions up for sale -- especially when the prices equal the value of many of the area's startups. The most expensive properties in America's technology capital are often sold privately and without the help of the multiple listing service.
But many of the homes themselves are decidedly high-profile. Take, for instance, Oracle (NasdaqGS:ORCL - News) Chief Executive Larry Ellison's 23-acre estate in Woodside, which he bought in 1995 for $12 million before spending more than $200 million to remake it into a 16th-century Japanese palace, complete with an authentic tea house and strolling garden.
Silicon Valley is dotted with similarly expansive mansions, often hidden behind gates or giant redwood trees. Residents of Atherton, the area's most exclusive community, include Eric Schmidt, chairman and CEO of Google (NasdaqGS:GOOG - News); Charles Schwab, the founder of brokerage Charles Schwab (NasdaqGS:SCHW - News); and Meg Whitman, former CEO of eBay (NasdaqGS:EBAY - News).
Foreclosure-Free Zone
Unlike other California markets that have been battered by foreclosures, real estate in Silicon Valley, part of the pricey San Francisco Bay area, has remained relatively strong and has been buoyed by the job growth in the technology sector and some of the highest salaries in the nation. The subprime problems that have vexed other parts of California have been relegated to parts of San Jose and to the outskirts of Silicon Valley. The towns with the best schools, including Palo Alto, Woodside, Los Altos Hills, and Cupertino also tend to have the most robust markets.
And luxury homes -- properties listed for more than $3.5 million -- might be holding up best because buyers who can afford these prices aren't concerned about interest-rate fluctuations or the credit crunch. This could change if the stock market continues to plunge and the nation falls into a deep recession, however.
"People here in Silicon Valley are so rich," says Los Gatos Realtor Susan Fagin. "When I first started in real estate 20 years ago, my dream was to get a doctor as a client. Now, all we want is a Google employee as a client."
A BusinessWeek.com survey of the most expensive listings in Silicon Valley included 14 ranging from a $10.75 million estate in Woodside to a $45 million manor in Los Altos Hills. The $45 million listing on Stonebrook Court includes a 30,000-square-foot mansion, built in 1914, which "played host to Presidents and kings, movie stars and celebrities," according to the property's online description. It has a grand ballroom that is adorned with "16th-century gilded Venetian ceiling paintings."
Asking Prices and "Gold"
The market has slowed since the credit crisis began last summer, says Dave Walsh, president of the Santa Clara County Assn. of Realtors and vice-president of Alain Pinel Realtors in San Jose. But multiple offers still come in for some listings, he says. "Most properties are not selling above asking price anymore," Walsh says. "Now they're getting asking price."
Median home prices in prime areas of Silicon Valley are "plus or minus 5%" compared to a year ago, according to Kenneth Rosen, chairman of the Fisher Center for Real Estate & Urban Economies at the University of California, Berkeley. Commercial real estate is even stronger. Apartment rents climbed 5% to 10% in the first quarter compared to a year ago, he says. "Technology is doing well and that's a big positive," Rosen says.
Teardowns, which were popular during the housing boom in suburbs across the country, are a visible sign of Silicon Valley's busy market. Buyers are making offers on homes with the intention of knocking them down and replacing them with mansions.
Drive a bit outside downtown Los Gatos, just past the post office, and you'll find a 20-acre estate on sale for $13.5 million. The owners of the property are empty-nesters and are looking to move to a smaller property in town. The house itself is not large compared to other Silicon Valley mansions in this range. But in addition to the 8,200-square-foot main house, a caretaker's cottage, and a guest house, the compound also has 45 minutes' worth of hiking trails and a swimming pool large enough to paddle around in a kayak. And the real attraction: 17 acres of undeveloped land that are more or less as nature left them. A buyer could easily subdivide the sprawling property and put up a few more houses here.
"In any of these hillside communities, a parcel of land is like gold," says the listing's agent, Dennis Byron, who has been selling Silicon Valley real estate for 36 years. "Buildable pieces are valuable."
On the Down Low
Byron is careful not to reveal much about the sellers. Wealthy homeowners in Silicon Valley tend to value privacy.
Catherine Marcus, a realtor with Sotheby's International Realty in San Francisco, says one of her listings, a 5,200-square-foot home in Woodside, recently sold for $7 million and "never made it to the market."
"An agent called me and said, 'What do you have? I have a client that wants to buy,'" she says. "At that level, people are very picky. Yes, people think these people have all the money in the world and can afford anything. They also want everything in the world so you have to go and hunt it down."
Wednesday, July 02, 2008
Market Update
Here is an update on the local market with the latest data from May 2008. Median prices of resales of single family homes and condos as well as new home sales are reported in these data. The year-to-year percent change is based on a comparison of the current data to May 2007. If you would like data on a city or area that I have not listed here, feel free to contact me.
Have an Energy-Efficient Summer
Here are some tips on how to stay cool this summer and lower your energy bills by being energy-efficient...
- Unplug that charger
Once you power up your mobile, iPod,PSP etc... unplug its greedy little charger and save an average of 7kg of CO2 a year! - Turn your heating down
Just by –1º save an average of 400kg of CO2 a year! - Boil only what you need
Need a cup… boil a cup and no more. Save an average of 45kg of CO2 a year. - Take a stand against “standby”
A TV left on standby still burns vast quantities of energy. Turn if off and save an average of 150kg of CO2 a year! - Turn out the lights
If you don’t need it... turn if off and save an average of 100kd of CO2 a year! - Take a low power shower
Showers use nearly half the water of baths and cost a lot less to heat. Save an average of 290kg of CO2 a year! - Stuff the freezer
Freezers work best when tightly pack with food because they don’t have to work so hard to freeze the air space. Saves a bundle of CO2 a year! - Buy better bulbs
Low energy bulbs give off the same amount of light but run on a third of the power. Save an average of 200kg per year! - Lower your laundry temp
Washing your clothes on cold works just as well and saves an average of 90kg of CO2 a year! - Buy local food
Food that doesn’t have to be flown in from around the world is just as tasty. Save an average of 4 tons of CO2 a year!
*Savings based on an average family per year.
Thursday, May 29, 2008
Relay For Life of Los Altos/Hills
This year's Los Altos Relay for Life will be taking place 10 AM June 21 to 10 AM June 22 at the Los Altos High School Track.
Relay for Life is one of the big events I personally work on each and every year as Captain for Team Intero. I just wanted to provide some more details on this fast-approaching event, and encourage all of you to come out and support this great cause in any way you can!
Relay For Life is a 24-hour community gathering to raise funds and awareness about research, education, advocacy, and patient services of the American Cancer Society. We gather for 24 hours to:
Join our team. Just drop by! Be a Volunteer.
Register for the Survivor Lap and complimentary luncheon.
BE PART OF RESEARCH: From 11 AM to 3 PM only on Saturday, June 21, you can enroll in a long-term research study into the lifestyle, behavioral, and genetic influences in the prevention of cancer--Cancer Prevention Study-3. For more information, go to www.cancer.org/cps3
You can learn more about Relay at losaltosrelay.com or call the Event Co-Chair Alan Russell at 650-947-2296. Get info at the Discovery Shop on Main Street. at the Los Altos Main Library, at the State Farm offices, and at Dream Dinners in the Village Court.
Relay for Life is one of the big events I personally work on each and every year as Captain for Team Intero. I just wanted to provide some more details on this fast-approaching event, and encourage all of you to come out and support this great cause in any way you can!
Relay For Life is a 24-hour community gathering to raise funds and awareness about research, education, advocacy, and patient services of the American Cancer Society. We gather for 24 hours to:
- CELEBRATE the lives of those who have battled cancer (Opening Ceremony and Survivor Lap: 10 am Saturday).
- REMEMBER loved ones lost to this disease (Luminaria Ceremony: Dusk Saturday).
- FIGHT BACK against this disease that has taken so much from all of us (Closing Ceremony: 9 AM Sunday).
Join our team. Just drop by! Be a Volunteer.
Register for the Survivor Lap and complimentary luncheon.
BE PART OF RESEARCH: From 11 AM to 3 PM only on Saturday, June 21, you can enroll in a long-term research study into the lifestyle, behavioral, and genetic influences in the prevention of cancer--Cancer Prevention Study-3. For more information, go to www.cancer.org/cps3
You can learn more about Relay at losaltosrelay.com or call the Event Co-Chair Alan Russell at 650-947-2296. Get info at the Discovery Shop on Main Street. at the Los Altos Main Library, at the State Farm offices, and at Dream Dinners in the Village Court.
Sunday, April 27, 2008
Landscaping...
...the best return for your renovation dollar, plus the pay off increases over time.
Landscaping adds more value than almost any other home renovation. It doesn't have to cost a bundle and best of all you can do it yourself.
A recent Michigan State University study found that, depending on where the house is located, high-quality landscaping adds five to 11 percent to its price.
If you have no immediate plans to move, that's even better. Landscaping is the one home improvement that actually appreciated over time.
Where do you start? Depending how long you decide to stay in your current home will determine which projects to tackle first.
If you're selling in a year or less...
Edge the beds. Cutting fresh edges where grass meets mulch makes the lawn well kept. Simpling curving the edge of your flower beds could increase the value of your home by one percent.
Nourish the grass. For a truly lush lawn, ideally you should start regular fertilizer treatments a year before listing the house. But you can green up your lawn in one application.
Scatter color throughout. For about $1 a plant, you can blanket your yard with petunias, impatiens, and other small annuals that will flower throughout the current growing season.
Also invest in some larger perennials and in shrubs that stand at least four feet high. A few good-size plants have more curb appeal than 20 little ones.
If you're improving for the long term...
Cut back the jungle. Many everyday yard plants, such as azaleas, forsythia, hollies, and rhododendrons, will fill out with new growth after a season or so--even if you hack them down to stumps.
Add drama with foliage. A distinctive yard will make your home more appealing to buyers, so replace plants that don't flower, or provide interesting foliage with eye-catching alternatives, like a patch of blackeyed Susans, a flowering crabapple or cutleaf Japanese maple.
If a move is not in your future, you don't need to spend a lot of money for big plants. You can save up to 50 percent or more by buying small ones and waiting a few seasons to get the full visual impact. Keep in mind when planting to space them based on the mature size listed on the label, not how they look now.
Consider new angles. Most yards have almost all the plants along the foundation and property lines. But if you place yours throughout different parts of the property, you'll create a dept of field that makes your home look farther away from the road.
Try putting some near the house's corners to accentuate its shape, other near the street to define the yard, and some in between, where they can block unfortunate views and be admired from indoors.
A little privacy.It's nice to wave hello to your neighbors out front, but the backyard should be a private space. If your backyard feels overexposed, fencing can offer a quick fix. You can also achieve the same effect at a much lower cost by planting small evergreen shrubs, although you'll have to wait a few seasons for full coverage.
If you are looking for help, please feel free to call me. I have a list of qualified, trusted landscapers in the Silicon Valley and surrounding areas.
Landscaping adds more value than almost any other home renovation. It doesn't have to cost a bundle and best of all you can do it yourself.
A recent Michigan State University study found that, depending on where the house is located, high-quality landscaping adds five to 11 percent to its price.
If you have no immediate plans to move, that's even better. Landscaping is the one home improvement that actually appreciated over time.
Where do you start? Depending how long you decide to stay in your current home will determine which projects to tackle first.
If you're selling in a year or less...
Edge the beds. Cutting fresh edges where grass meets mulch makes the lawn well kept. Simpling curving the edge of your flower beds could increase the value of your home by one percent.
Nourish the grass. For a truly lush lawn, ideally you should start regular fertilizer treatments a year before listing the house. But you can green up your lawn in one application.
Scatter color throughout. For about $1 a plant, you can blanket your yard with petunias, impatiens, and other small annuals that will flower throughout the current growing season.
Also invest in some larger perennials and in shrubs that stand at least four feet high. A few good-size plants have more curb appeal than 20 little ones.
If you're improving for the long term...
Cut back the jungle. Many everyday yard plants, such as azaleas, forsythia, hollies, and rhododendrons, will fill out with new growth after a season or so--even if you hack them down to stumps.
Add drama with foliage. A distinctive yard will make your home more appealing to buyers, so replace plants that don't flower, or provide interesting foliage with eye-catching alternatives, like a patch of blackeyed Susans, a flowering crabapple or cutleaf Japanese maple.
If a move is not in your future, you don't need to spend a lot of money for big plants. You can save up to 50 percent or more by buying small ones and waiting a few seasons to get the full visual impact. Keep in mind when planting to space them based on the mature size listed on the label, not how they look now.
Consider new angles. Most yards have almost all the plants along the foundation and property lines. But if you place yours throughout different parts of the property, you'll create a dept of field that makes your home look farther away from the road.
Try putting some near the house's corners to accentuate its shape, other near the street to define the yard, and some in between, where they can block unfortunate views and be admired from indoors.
A little privacy.It's nice to wave hello to your neighbors out front, but the backyard should be a private space. If your backyard feels overexposed, fencing can offer a quick fix. You can also achieve the same effect at a much lower cost by planting small evergreen shrubs, although you'll have to wait a few seasons for full coverage.
If you are looking for help, please feel free to call me. I have a list of qualified, trusted landscapers in the Silicon Valley and surrounding areas.
Friday, April 11, 2008
Water Conservation: Every Drop Counts
Summer is just around the corner, and with summer comes our warmest days here in the Silicon Valley. When temperature rises, so does our water use. As a result, many counties are asking their residents to voluntarily reduce their water usage. Here are a few very easy ways to help preserve our most precious resource in our environment.
Seek out leaks. Repair leaks in your faucets and toilets. A leaky faucet can waste 20 gallons or more per day. Leaky toilets can waste hundreds of gallons. To find out if your toilet has leaks, put a little food coloring in the tank. If, without flushing, color appears in the bowl, you have a leak that should be repaired. Leaks don't always happen indoors. Check outside faucets and hoses too.
Install aerators. To save water every time you turn on the faucet, consider installing aerators. Faucet aerators are circular screened disks, usually made of metal, that screw onto the head of the faucet. They will reduce the water flow. You can get them at any home improvement store, and they generally don't cost more than a few dollars.
Landscape wisely. Don't cut your grass shorter than three inches. If you have taller grass, it will give some shade to the soil, and that will cut down on moisture loss. Spread wood chips or mulch around plants so the soil retains it moisture. Leave lower branches on trees and shrubs and allow leaf litter to accumulate on top of the coil. This will also keep the soil cooler.
Watch your watering. It's best to water at night or very early in the morning, when temperatures are cooler and evaporation is low. And be careful not to overwater! You only need about an inch of water--and that's about 20 minutes of sprinkler action for most. If you want to make sure you've watered your lawn the right amount, put a few empty tuna fish cans around your lawn when the sprinkler is on. When those tins gets full of water, turn off the sprinkler.
Remember, every drop counts!
Seek out leaks. Repair leaks in your faucets and toilets. A leaky faucet can waste 20 gallons or more per day. Leaky toilets can waste hundreds of gallons. To find out if your toilet has leaks, put a little food coloring in the tank. If, without flushing, color appears in the bowl, you have a leak that should be repaired. Leaks don't always happen indoors. Check outside faucets and hoses too.
Install aerators. To save water every time you turn on the faucet, consider installing aerators. Faucet aerators are circular screened disks, usually made of metal, that screw onto the head of the faucet. They will reduce the water flow. You can get them at any home improvement store, and they generally don't cost more than a few dollars.
Landscape wisely. Don't cut your grass shorter than three inches. If you have taller grass, it will give some shade to the soil, and that will cut down on moisture loss. Spread wood chips or mulch around plants so the soil retains it moisture. Leave lower branches on trees and shrubs and allow leaf litter to accumulate on top of the coil. This will also keep the soil cooler.
Watch your watering. It's best to water at night or very early in the morning, when temperatures are cooler and evaporation is low. And be careful not to overwater! You only need about an inch of water--and that's about 20 minutes of sprinkler action for most. If you want to make sure you've watered your lawn the right amount, put a few empty tuna fish cans around your lawn when the sprinkler is on. When those tins gets full of water, turn off the sprinkler.
Remember, every drop counts!
Thursday, March 20, 2008
Selling Your Home Takes More Than Placing a Sign on Your Lawn!
The real work begins when the sign goes up. As your Realtor, I will market your home 24 hours a day, seven days a week. Giving you maximum exposure and the results you deserve.
I will create and tailor an extensive marketing plan specific to the needs of each property including:
In the past, clients have appreciated and praised my business savvy, my marketing expertise and the unparalleled knowledge of your neighborhood. I can create an advantage for you in any marketplace.
Having the Right Realtor is key to making sure things happen in any market…
Find out why my marketing and pricing strategy proves successful time and time again.
I will create and tailor an extensive marketing plan specific to the needs of each property including:
- Comprehensive home evaluation
- Detailed market analysis to ensure the best pricing strategy
- High-quality marketing materials and brochures that best showcase your home through detailed facts and architectural photography
- Illustrative virtual tours
- Informative advertising in your local market
- Creative home staging suggestions and style recommendations that may make your home more marketable and more profitable
In the past, clients have appreciated and praised my business savvy, my marketing expertise and the unparalleled knowledge of your neighborhood. I can create an advantage for you in any marketplace.
Having the Right Realtor is key to making sure things happen in any market…
Find out why my marketing and pricing strategy proves successful time and time again.
Monday, February 11, 2008
There's No Place Like Home to Find Shelter!
Tax day is approaching and as you may know, your home offers a number of tax deductions and credits. Be SURE to visit www.irs.gov for the details on each item AND consult your tax accountant.
Mortgage Loan Interest: Interest on mortgage debt secured by a first and second home is deductible. Home Equity Loan Interest is also deductible within some limits.
Home Improvement Loan Interest: You can deduct all the interest on a home improvement loan provided the work is a “capital improvement.”
Points: You can fully deduct points associated with a home purchase mortgage, but not a mortgage broker’s commission.
Property Taxes: Property taxes or real estate taxes are fully deductible.
Capital Gains Exclusion: You may keep, tax free, a portion profit on the sale of a home used as a principal residence for two of the prior five years.
Home-Based Business Deduction:
Home offices that use a portion of your home for business could qualify you to deduct a percentage of costs related to that portion.
Selling Costs and Capital Improvements:
You can reduce your taxable capital gain by the amount of your selling costs.
Moving Costs: A move triggered by a new job comes with some deductible moving costs. Energy Tax Credits are available for the cost of energy waste reduction in your home.
This is not tax advice, please be sure to check with your accountant.
Mortgage Loan Interest: Interest on mortgage debt secured by a first and second home is deductible. Home Equity Loan Interest is also deductible within some limits.
Home Improvement Loan Interest: You can deduct all the interest on a home improvement loan provided the work is a “capital improvement.”
Points: You can fully deduct points associated with a home purchase mortgage, but not a mortgage broker’s commission.
Property Taxes: Property taxes or real estate taxes are fully deductible.
Capital Gains Exclusion: You may keep, tax free, a portion profit on the sale of a home used as a principal residence for two of the prior five years.
Home-Based Business Deduction:
Home offices that use a portion of your home for business could qualify you to deduct a percentage of costs related to that portion.
Selling Costs and Capital Improvements:
You can reduce your taxable capital gain by the amount of your selling costs.
Moving Costs: A move triggered by a new job comes with some deductible moving costs. Energy Tax Credits are available for the cost of energy waste reduction in your home.
This is not tax advice, please be sure to check with your accountant.
Monday, January 28, 2008
10 Simple Ways to Make Your Home More Green
- Use Fluorescent Bulbs. Replace conventional incandescent light bulbs with compact fluorescent light bulbs (CFLs). They cost a little more, but last up to 10 times longer, use two-thirds less energy and give off 70 percent less heat.
- Look for the Energy Star Label. Energy Star-qualified refrigerators use about half as much energy as refrigerators made before 1993.
- Get Unplugged. Many home electronics still consume energy even when they are turned off. Many devices with a "standby mode" will continue to use power. Also, chargers and power adapters continue to draw power from the wall socket even if the device is not attached. Unplug these devices or use a power strip to turn off multiple units, when they aren’t being used to make sure that you aren’t wasting energy.
- Double-Up on Windows. Replacing old single-pane windows with double pane windows helps reduce heat loss in winter and heat gain in the summer.
- Turn Down the Thermostat. Lowering you thermostat by just one degree can reduce costs by about four percent.
- Sustainable Floors. Cork flooring not only looks great, but it’s also natural insulator. So when you look into purchasing flooring, consider using bamboo, cork or another sustainable material.
- Earth-Friendly Decks. A lot of deck material comes from tropical hardwoods. These woods look great and stand up to the elements for a very long time.
- Low-Flow Faucets. Low-flow water fixtures such as showerheads, faucets and toilets reduce water consumption and water heating costs by as much as 50 percent.
- Buy Renewable Energy. Check with your local utility company and see if you can purchase renewable energy.
- Recycle! After you replace all those inefficient, windows and fixtures, make sure you recycle all that metal and glass. By recycling half of your household waste, you can save 2,400 pounds of carbon dioxide annually. Find more information about programs in your area by visiting www.recycle.com.
Thursday, January 03, 2008
Does a Drop in the Federal-Funds Rate Influence Fixed-Rate Mortgages?
Mortgage rates actually follow the bond market, not the Fed-funds rate. The interest rate on a 30-year fixed-rate mortgage tracks the yield on the 10-year Treasury note. Lenders typically set their base mortgage rate around two percentage points higher than the 10-year bond yield. Rates on adjustable-rate mortgages are tied to yields on two-, three- and five-year Treasuries. These short-term loans are more sensitive to Fed rate movements, and those with the shortest maturities see the greatest impact when short-term rates rise and fall.
So if you want to know the direction of mortgage rates, you need to get a sense of where bond yields are heading. Investors tend to flock to the safety of U.S. Treasury when they’re worried about the state of the economy. That "flight to quality" drives bond prices higher and their yields lower. (Bond prices move inversely to yields.)
Rather than gamble and wait on lower rates, consider a lender that is willing to let your rate "float down" if mortgage rates drop after you’ve locked in your loan, but before the closing. Lenders often charge fees for float downs--typically around 0.25% of the loan balance--so make sure you understand the loan’s terms of the float down before you choose the option. Feel free to ask me for a Mortgage Broker referral.
So if you want to know the direction of mortgage rates, you need to get a sense of where bond yields are heading. Investors tend to flock to the safety of U.S. Treasury when they’re worried about the state of the economy. That "flight to quality" drives bond prices higher and their yields lower. (Bond prices move inversely to yields.)
Rather than gamble and wait on lower rates, consider a lender that is willing to let your rate "float down" if mortgage rates drop after you’ve locked in your loan, but before the closing. Lenders often charge fees for float downs--typically around 0.25% of the loan balance--so make sure you understand the loan’s terms of the float down before you choose the option. Feel free to ask me for a Mortgage Broker referral.
Monday, December 03, 2007
The ABCs of Storage
In many American homes, the change of seasons is a signal for storing away some stuff and pulling out other supplies. Whether it’s yard tools or summer clothes, we all have items we put into storage for awhile, and pull out those things we need for another season, like holiday decorations. If you’re selling your home, you should try to store away extra items to make your home appear more spacious.
“A” is for Assessment
What do you have and where can you put it? Take a look at all your stuff and then take a look at where you can tuck it away in your home. Walk through the home with a pad and pen and dedicate an hour of your time to finish this first step.
“B” is for Banish and Box
While this may sound easy, it’s where the hard decisions get made. Box up what you’re going to keep and banish what needs to be thrown out, held for a yard sale or given to charity.
“C” is for Control
These two steps keep your storage areas neat and organized. They should also become a routine part of your storage plan. Maintaining your storage areas with smaller containers (such as see-through boxes, file folders or portable hanging racks) will keep items orderly and easily identifiable. Cardboard or plastic boxes with removable lids are your best bet for corralling stuff. The boxes are easy to handle and uniform in size.
Check out these additional moving tips on my website by clicking here.
“A” is for Assessment
What do you have and where can you put it? Take a look at all your stuff and then take a look at where you can tuck it away in your home. Walk through the home with a pad and pen and dedicate an hour of your time to finish this first step.
“B” is for Banish and Box
While this may sound easy, it’s where the hard decisions get made. Box up what you’re going to keep and banish what needs to be thrown out, held for a yard sale or given to charity.
“C” is for Control
These two steps keep your storage areas neat and organized. They should also become a routine part of your storage plan. Maintaining your storage areas with smaller containers (such as see-through boxes, file folders or portable hanging racks) will keep items orderly and easily identifiable. Cardboard or plastic boxes with removable lids are your best bet for corralling stuff. The boxes are easy to handle and uniform in size.
Check out these additional moving tips on my website by clicking here.
Monday, November 19, 2007
The Emerging Market of Condominiums
Condominiums are designed to provide multi-family housing and are good solutions
for many homebuyers.
Indicators for a Strong Market in Multi-Family Housing Units
If condos are such a good investment - why are there so may for sale?
The supply outweighs the demands. When a single home is offered, that is one
home on the market but when a developer sells a project, it is usually 500 plus
homes to the market. An oversupply doesn’t always mean the product is deficient.
When affordable housing is available, why would you pass it up?
for many homebuyers.
Indicators for a Strong Market in Multi-Family Housing Units
- Single and non-traditional households represent the majority of housing
- consumers.
- Single women make up nearly a quarter of the homebuyer market and they
- prefer Multi-family Housing.
- Condos are also gaining interest among first time home buyers, empty nesters and retirees
- Condos are great second homes
- And usually they are owner occupied instead of renterss
If condos are such a good investment - why are there so may for sale?
The supply outweighs the demands. When a single home is offered, that is one
home on the market but when a developer sells a project, it is usually 500 plus
homes to the market. An oversupply doesn’t always mean the product is deficient.
When affordable housing is available, why would you pass it up?
Saturday, October 20, 2007
Avoiding Capital Gains Tax on the Sale of Your Home
Worried about taxes eating away too much of the profit on your home? Under a law enacted about ten years ago, a married couple filing jointly usually can exclude as much as $500,000 of their gain. For someone who is single or married and filing separately, the limit is $250,000.
To qualify for the full exclusion, you typically must have owned the home and lived in it as your primary residence for at least two of the five years prior to sale.
This exclusion applies only to your primary residence. Even someone who couldn’t pass those tests might qualify to exclude most or all of the gain under certain circumstances.
The seller may be eligible for a reduced exclusion if that person had to sell because of a “change in place of employment”, health reasons or “unforeseen circumstances.”
What are unforeseen circumstances? Examples cited by the Internal Revenue Service include divorce, death, or “multiple births resulting from the same pregnancy.”
Some think they’re required to buy a new home to qualify for this home-sale gain exclusion. That’s wrong. They’re probably thinking about a law that was repealed about a decade ago, under which you could defer tax on the gain on the sale of your home by rolling over the proceeds into a new home that cost as much as, or more than, the old one. Congress eliminated that law, in part because it was viewed as unfair to people who wanted to downsize and buy a less expensive home or to sell and move into a rental.
Friday, September 21, 2007
Techniques to Make Your Home More Glamorous to You & Potential Buyers
Whether you are thinking about selling or you would just like to freshen up your home’s look a bit, here are a few techniques that can be tailored to everyone's pocketbook.
As noted in previous entries, staging is the very best proven way to get top dollar for your home as you prepare it for sale. Homes that are staged sell faster and for more money! But, if you are not interested in selling, you may still find some interesting ideas that you may want to consider for your own enjoyment.
First, glamorize your curb appeal. Whether it is all new sod, fresh landscaping, new exterior design, landscaping lights, or something as simple as an updated, modern front door and handle, curb appeal is paramount to getting buyers through the front door.
Make a memorable entrance. The minute a potential buyer walks in the door, he or she should think looks good, sounds good, and smells good. Put an oversized mirror in your entry or a dramatic piece of artwork. Fresh flowers and scented candles go a long way for this first impression.
Next, refresh old or worn attributes of the home. If you have hardwood floors, have them sanded and re-stained in a darker color. Dark wood floors are more popular than ever and quickly add drama to a home.
If you have carpet, have it steam cleaned or replace it with a light taupe Berber -- appealing to most people and makes the room actually appear larger. If you have stone floors, have them pressure cleaned.
Make your furniture unobtrusive. Be open to new furniture layouts. Keep in mind that the fireplace does not always have to be the focus of your seating area. An outdoor room or pool area may be more pleasing to the eye.
Modernize your kitchen with stainless-steel appliances. Stainless steel appliances immediately add perceived value.
Get a five-star hotel look in your bathroom. Everyone loves to go on vacation. Bring the same thick, white, luxury hotel towels into your home bathrooms. Always have the thickest towels on your racks and have two hand towels carefully placed next to each sink. A wood tray with infused scented candles and a Q-Tip holder (with cotton and Q-Tips) is also effective in projecting the five-star hotel look.
Professionally built-out closets add value to your home. If possible, have closets only one-half filled to capacity. Have all your shoes on racks and nothing on the floor. If your closets are scraped up or dingy, paint them white. Put cedar blocks for scent.
Look at your master bedroom as if it were a luxury-hotel suite. You only need a few items to impress. A couple of items to consider: thick white sheetsand pillows; a thick white duvet and duvet cover; and a nice tray with a couple of reading books and scented candles. A plant that reaches the ceiling adds perceived height to any room and, if room permits, try a nice chair with reading light in the corner.
Make sure your house sounds good. Hook-up your iPod to inexpensive wireless speakers casually placed throughout the house.
Add perceived square footage by dramatizing outdoor areas. If you have a small patio, put an oversized leaning mirror on the back wall to double the size and place a café table with two chairs, two placemats and colorful napkins with interesting napkin holders. If possible, hang a candlelight chandelier or an outdoor light above the table. If you have a larger area, create an outdoor living room with eating area. Outdoor living rooms are impressive to buyers and add to the perceived value. Purchase extra-long white sheer mesh draperies and install rods around your trellises or outdoor area for that billowy drapery feeling found only in exclusive resort hotels throughout the world.
These techniques will increase the wow factor needed to sell your home higher and faster. Who knows, you may love your new look so much, you may not want to move at all.
If you would like more information on staging techniques, please give me a call. I will be happy to share my knowledge and experience to get you the best possible price for your home.
As noted in previous entries, staging is the very best proven way to get top dollar for your home as you prepare it for sale. Homes that are staged sell faster and for more money! But, if you are not interested in selling, you may still find some interesting ideas that you may want to consider for your own enjoyment.
First, glamorize your curb appeal. Whether it is all new sod, fresh landscaping, new exterior design, landscaping lights, or something as simple as an updated, modern front door and handle, curb appeal is paramount to getting buyers through the front door.
Make a memorable entrance. The minute a potential buyer walks in the door, he or she should think looks good, sounds good, and smells good. Put an oversized mirror in your entry or a dramatic piece of artwork. Fresh flowers and scented candles go a long way for this first impression.
Next, refresh old or worn attributes of the home. If you have hardwood floors, have them sanded and re-stained in a darker color. Dark wood floors are more popular than ever and quickly add drama to a home.
If you have carpet, have it steam cleaned or replace it with a light taupe Berber -- appealing to most people and makes the room actually appear larger. If you have stone floors, have them pressure cleaned.
Make your furniture unobtrusive. Be open to new furniture layouts. Keep in mind that the fireplace does not always have to be the focus of your seating area. An outdoor room or pool area may be more pleasing to the eye.
Modernize your kitchen with stainless-steel appliances. Stainless steel appliances immediately add perceived value.
Get a five-star hotel look in your bathroom. Everyone loves to go on vacation. Bring the same thick, white, luxury hotel towels into your home bathrooms. Always have the thickest towels on your racks and have two hand towels carefully placed next to each sink. A wood tray with infused scented candles and a Q-Tip holder (with cotton and Q-Tips) is also effective in projecting the five-star hotel look.
Professionally built-out closets add value to your home. If possible, have closets only one-half filled to capacity. Have all your shoes on racks and nothing on the floor. If your closets are scraped up or dingy, paint them white. Put cedar blocks for scent.
Look at your master bedroom as if it were a luxury-hotel suite. You only need a few items to impress. A couple of items to consider: thick white sheetsand pillows; a thick white duvet and duvet cover; and a nice tray with a couple of reading books and scented candles. A plant that reaches the ceiling adds perceived height to any room and, if room permits, try a nice chair with reading light in the corner.
Make sure your house sounds good. Hook-up your iPod to inexpensive wireless speakers casually placed throughout the house.
Add perceived square footage by dramatizing outdoor areas. If you have a small patio, put an oversized leaning mirror on the back wall to double the size and place a café table with two chairs, two placemats and colorful napkins with interesting napkin holders. If possible, hang a candlelight chandelier or an outdoor light above the table. If you have a larger area, create an outdoor living room with eating area. Outdoor living rooms are impressive to buyers and add to the perceived value. Purchase extra-long white sheer mesh draperies and install rods around your trellises or outdoor area for that billowy drapery feeling found only in exclusive resort hotels throughout the world.
These techniques will increase the wow factor needed to sell your home higher and faster. Who knows, you may love your new look so much, you may not want to move at all.
If you would like more information on staging techniques, please give me a call. I will be happy to share my knowledge and experience to get you the best possible price for your home.
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